NEW YORK, Feb. 26 (UPI)–The National Enquirer admits it published an erroneous story about Philip Seymour Hoffman and is now funding an annual scholarship in the late actor’s name.

The announcement came after Hoffman’s longtime friend, New York playwright David Bar Katz, filed a $50 million lawsuit against the tabloid, which claimed the two men had a homosexual relationship.

Bar Katz said in court documents the story and an interview attributed to him were “complete fabrication.”

The Enquirer withdrew the article and apologized, the Hollywood Reporter said. The publication also is funding Bar Katz’s American Playwriting Foundation, which will grant $45,000 each year to make an unproduced play, as part of its settlement of Bar Katz’s lawsuit.